When you’re getting into property investment you need one of two things:
The days of 100% mortgages are long gone and for most people that means a 25% deposit. If you’re in the south east, that could be a fairly big wedge of money, with property prices within London commuting distance. So, without a cash pot, what are your options?
The first one most people think of is a joint venture (JV) with someone else’s money to finance the deposit. There are all kinds of challenges to this:
And that’s just the tip of the iceberg. Ask anyone who has experience of JVs and you’ll hear plenty of tales of woe.
The other side of this is that once the money has been invested in a property, it’s stuck in the property until you can remortgage. Remortgaging within 6 months won’t do your credit rating any good - lenders don’t like people who redeem their mortgage too soon.
That means that, unless you plan to sell, your JV money is stuck in the property until it earns enough from rent to repay your JV partner.
There are some strategies that will circumnavigate these problems. They’re all based on using bridging finance as your means of financing your purchase. Why is this better?
There is more - but this should be enough to whet your appetite. There are lots of bridging tips on my YouTube channel.
You can learn more here:
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